Gold moves in narrow ranges
Gold was traded over the past two weeks in narrow range as despite the downbeat data released recently, investors are wary of taking long positions due to the high price and uncertainty about the gold's direction in the coming period.
This week, gold prices moved between $1195.80 an ounce and $1217.95 which is lower than the previous week, yet it is still above $1200 level as it is currently trading at $1208.70.
The shiny metal had recorded its highest record in June on debt worries in the euro region but concerned eased with the bonds sell by highly indebted countries in the euro zone and comfort announcements by EU officials ahead of the release of banks tests results next week.
Meanwhile, eyes are tracking fundamentals in the U.S. and China to assess the strength of global recovery. Later on today, Michigan confidence is due with expectations to drop to 74.0 from 76.0, following the drop in retail sales and manufacturing output seen this week.
There are fears that the U.S. might fall in a double dip recession, especially after the dovish notes released by the Fed pointing that U.S. growth forecasts for the current year to range between 3.0% and 3.5% instead of 3.2% and 3.7%.
Also, in China data released yesterday showed that the economy grew 10.3% in the second quarter compared with the first quarter's expansion of 11.9% which is raising concerns that growth is slowing down in the third largest economy in the world.
However, gold was unable to take advantage of the pessimistic data as a safe haven due to its high price and the start of summer holidays.
Yesterday, gold shed $0.10 or 0.01% to close at $1208.10 an ounce. Gold Price was setin London on Thursday at $1208.00 per ounce during the PM fixing declining from $1211.75 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, retreated to 1,314.21 metric tons on July 15 from 1,314.81.
In currency market, the dollar did a slight upside correction against a basket of major currencies as reported by the six-currency gauge, the dollar index, which rebounded to 82.33 after falling to the lowest level in six weeks yesterday on weak U.S. data.